| Tue 31 Aug 2004, 17:22 | | Trading update and further cautionary announcement |
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CreditVision - Audited consolidated Annual Financial Statements 29 February
2004, trading update and further cautionary announcement
CreditVision Holdings Limited
(Formerly Nova Education and Technology Holdings Limited)
(Incorporated in the Republic of South Africa)
(Registration number 1998/006957/06)
Share code: CDT
ISIN: ZAE000053492
(`the company`)
NOVA EDUCATION AND TECHNOLOGY HOLDINGS LIMITED
AUDITED CONSOLIDATED ANNUAL FINANCIAL STATEMENTS 29 FEBRUARY 2004 AND FURTHER
CAUTIONARY ANNOUNCEMENT
CONSOLIDATED INCOME STATEMENT
for the period ended 29 February 2004
Audited Audited
12 months 12 months
Feb. 2004 Feb. 2003
R R
Revenue 9 997 952 9 057 112
Operating (loss)/profit (122 526) 609 961
Net interest (2 561 440) (2 463 473)
Operating (loss) before taxation (2 683 966) (1 853 512)
Taxation (8 758 823) 8 267 685
Net (loss)/profit after taxation (11 442 789) 6 414 173
Provision for irrecoverable portion of loan to
subsidiaries (2 676 621) -
Amortisation of intangible assets (43 854) (43 493)
Net (loss)/profit for period (14 163 264) 6 370 680
Headline (loss)/earnings per share (cents) (8,34) 4,67
(Loss)/earnings per share (cents) (10,32) 4,64
Number of shares 137 222 200 137 222 200
Reconciliation of headline earnings
Net (loss)/profit per the financial statements (14 163 264) 6 370 679
Adjusted for:
Amortisation of intangible assets 43 854 43 493
Provision for irrecoverable portion of loan to
subsidiaries 2 676 621 -
Headline (loss)/earnings (11 442 789) 6 414 172
Headline (loss)/earnings per share (cents) (8,34) 4,67
CONSOLIDATED CASH FLOW STATEMENT
for the period ended 29 February 2004
Audited Audited
12 months 12 months
Feb. 2004 Feb. 2003
R R
Cash flows from operating activities 39 521 3 739 179
Cash flows from investing activities (3 831 474) (924 834)
Cash flows from financing activities 3 939 079 (3 881 852)
Net decrease in cash and cash equivalents for
the period 147 126 (1 067 507)
Cash and cash equivalents at beginning of period (143 359) 978 201
Previously published (89 306) 958 701
Cash and cash equivalents of Joint Venture sold (54 053)
Adjustment - change in accounting policy - 19 500
Cash and cash equivalents at end of period 3 767 (89 306)
CONSOLIDATED BALANCE SHEET
at 29 February 2004
Audited Audited
12 months 12 months
Feb. 2004 Feb. 2003
R R
ASSETS
Non-current assets 16 845 176 21 849 776
Property, plant and equipment 372 582 103 337
Long-term trade receivables 15 077 717 12 205 372
Loan receivable 196 800 196 800
Loan to Joint Venture 1 040 196 866 847
Deferred tax 23 958 8 291 643
Intangible assets 133 923 185 777
CURRENT ASSETS 10 652 232 12 396 872
Trade receivables and other debtors 8 099 714 10 740 172
Cash and cash equivalents 643 827 578 819
Inventory 1 908 691 1 077 881
27 497 408 34 246 648
EQUITY AND LIABILITIES
CAPITAL AND RESERVES 2 652 413 16 374 405
Share capital 13 722 13 722
Share premium 40 875 874 40 875 874
Accumulated loss (38 237 183) (24 515 191)
NON CURRENT LIABILITIES 22 032 532 15 847 295
Interest bearing loans 20 732 144 14 646 907
Non interest bearing loans 1 300 388 1 200 388
CURRENT LIABILITIES 2 812 463 2 024 948
Accounts payable 1 598 850 1 258 823
Provisions 42 138 98 000
Receiver of Revenue 531 416
Bank overdraft 640 059 668 125
27 497 408 34 246 648
Net asset value per share (cents) 1,93 11,93
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the period ended 29 February 2004
Share Share Accumulated
capital premium loss Total
R R R R
29 February 2004
Balance beginning
of the year 13 722 40 875 874 (24 515 191) 16 374 405
Sale of Joint
Venture - - 441 272 441 272
Net profit for the
year - - (14 163 264) (14 163 264)
Balance end of year 13 722 40 875 874 (38 237 183) 2 652 413
29 February 2003
Balance beginning
of the year 13 722 40 875 874 (30 885 871) 10 003 725
Balance as
previously
published 13 722 40 875 874 (30 581 794) 10 307 802
Adjustment -
change in
accounting policy - - (304 077) (304 077)
Net profit for the
year - - 6 370 680 6 370 680
Balance end of the
year 13 722 40 875 874 (24 515 191) 16 374 405
PAST CHAIRMAN`S STATEMENT
During the previous financial year, we predicted that the 2004/05 financial year
would be typified by further investments and the laying of foundations upon
which to build the various business initiatives especially the roll-out of the
Bateleur text book publishing business. It was with great disappointment that we
had to report that the book sales were not as successful as expected. In this
regard, we report that we have achieved a pre-tax loss of R2,7 million. It
should also be noted that an amount of R2,7 million has been written off as a
result of subsidiaries that have been deregistered in the process of
streamlining the corporate structure. In the light of the above your company`s
major shareholder decided to sell their shares in the company as reported in the
circular to shareholders dated 20 February 2004 and as approved by shareholders
at the meeting held on 15 March 2004. The company now has a new major
shareholder and management that have indicated that they will continue with the
major original business of the company, being a finance company. The new Board
took their positions in March 2004 and will be reporting to shareholders in due
course. I would like to wish Mr. H.W Bonsma and his Board the best of luck for
the future. We are convinced that Creditvision (formerly EDUTECH) in future is
poised for a positive future and that the new Board will be able to optimise the
business opportunities that exist in the niche financial services community.
A word of gratitude to the shareholders and the Board of Directors for their
support during the past financial year.
C J Booyens
(Past Chairman and Non-executive Director)
NOTICE OF ANNUAL GENERAL MEETING
The annual unqualified audited financial statements prepared in accordance with
South African Statements of Generally Accepted Accounting Practice and notice of
annual general meeting have been posted to shareholders today. The annual
general meeting of the company will be held at 10:00 on Tuesday, 29 September
2004 at the company`s physical address below.
PROSPECTS FOR 2004/2005
During April 2004 your company`s name was changed to Creditvision Holdings
(hereinafter Creditvision) and the Group restructured to incorporate only the
holding company with an asset base of a personal loan and installment sale book.
The general business activities as reflected in the current financial statements
came to an end except for the personal loan and installment sale lending
business. Creditvision will focus on the expansion of its business into the
financial services sector. We consider Creditvision to be uniquely positioned in
the financial services sector and aim to meet the challenges of new business
opportunities and ensure optimisation of stakeholder interest. Our core
competencies are quality staff, knowledge of the market and the commitment to
innovative cash flow solutions. Innovative cash flow solutions include inter
alia consumer finance, invoice discounting, acquisition of debtors books, motor
vehicle rentals and short term insurance. We are positive that a sustainable
growth rate at a well managed risk will be achieved through optimising its
strengths and by applying its core skills. All efforts will be made by the
Board in diversifying into new strategic and value added investments and joint
ventures with partners that enjoy synergy with our business.
To this end the directors have recently purchased two shelf companies for R4 000
each from the chairman in which the following two business units will be
developed.
Motor Vision (Pty) Ltd t/a Visionrent(MV) - Product:Motor Vehicle rentals
(wholly owned subsidiary of Creditvision Holdings Limited)
*MV`s main business activities include customised short to medium term
operational rentals and fleet management services. Vehicles are supplied to the
customer through a tailored rental agreement, which includes full maintenance,
free kilometers, insurance and on site delivery.
*MV has received an ongoing credit facility from a well known financial
institution. Additional non-finance cost turnover will be generated from
additional services provided to customers such as insurance products.
*In addition, MV will act as a dealership should the customer exchange the
vehicle before the end of the term, the profit thereon is realised on date of
exchange.
Creditvision Rental Finance (Pty) Ltd (CVR) - Products: Invoice
discounting/Consumer Finance/Debtors Books (wholly owned subsidiary of
Creditvision Holdings Limited)
*CVR will establish its name in the financial services sector by offering
products such as invoice discounting, consumer financing and the management and
acquisition of debtors` books.
*CVR has recently signed up new clients for invoice discounting, with facilities
in excess of a million rand each, per month.
*CVR has signed contracts in place with well known, brand stores, providing in-
house financing to their clients wishing to purchase goods on credit.
In addition to the above Creditvision has established a short term insurance
Cell captive - Creditvision Holdings Limited /Product: Short term Insurance
*Creditvision Holdings Limited has a cell captive, underwritten by Mutual &
Federal and doing business as Visionsure.
*The purpose of the cell captive is to further extend our product base by
offering short term insurance on the vehicle rental side and credit life
insurance on the consumer financing side, thereby serving the needs of our
customers.
EMPOWERMENT (`BEE`) PROSPECTS 2004/2005
Creditvision is committed to complying with the financial services charter and
we are currently negotiating the incorporation of a BEE partner. The BEE partner
is integral to the continued growth of the company and we foresee the BEE
partner making positive contributions to stakeholders` wealth. We look forward
to meeting the ongoing challenges and opportunities presented to us.
DIRECTORS OF THE COMPANY
The current directors of the company are:
Executive
Mr H W Bonsma - Chairman of the Board
Mr K M van Nieuwenhuizen - Chief Executive Officer
Mrs M Durrant - Chief Financial Officer
Dr P W de Wet - Director of the Board
Non-executive Company secretary
Mr D H Cooper Mrs E G Schubert
Postal address Physical address
PO Box 1571 Bank Forum Building
Brooklyn Square 0075 Ground Floor
Veale Street, Brooklyn
337
The new directors appointed from 1 September 2004 are:
Dr P W de Wet (57) - (PhD HC)
Executive director
Piet did his undergraduate studies in Law and furthered his education at various
business Schools in South Africa and abroad. He has extensive experience both in
the corporate world and in smaller public and private companies. He is a member
of the Institute of Directors and has been a director of companies for the past
25 years. His portfolio in Creditvision Holdings Limited includes corporate
affairs, investor relations, acquisitions, BEE and labour relations.
Mr D H Cooper (46)
Non-executive director
David serves on the boards of various South African companies and is very active
in rural and infrastructure development. He is an accountant educated both in
South Africa and abroad. He adds independent value to the Board in the labour,
human relations and financial disciplines.
TRADING UPDATE AND CAUTIONARY ANNOUNCEMENT
Due to the success in growing the company`s financial services business and the
projects discussed under prospects, the shareholders are advised that the half-
year results will exceed those of the corresponding period last year. The
directors estimate that the company will have a pre-tax profit of between R50
000 and R300 000 for the first six months this year. The auditors of the company
have not reviewed these numbers. Shareholders are accordingly advised to
exercise caution in dealing in the company`s securities until the half-year
results are published, which should be no later than 30 September 2004.
FURTHER CAUTIONARY ANNOUNCEMENT
Further to the cautionary announcement published on 9 August 2004, shareholders
are advised that the company is still in negotiations which, if successfully
concluded, may have a material effect on the price of the company`s securities.
Due to the success of growing the financial services business, the directors
intend to approach the JSE Securities Exchange South Africa Listings Committee
to amend the status of the company from that of cash shell to operating company.
Accordingly, shareholders are advised to continue to exercise caution when
dealing in the company`s securities until a further announcement is made.
31 August 2004
Date: 31/08/2004 05:13:07 PM
Produced by the JSE SENS Department
